Abrdn Equity Income Share Discussion Threads

[fordtin] 13/4/2022 15:14

"An update from our investment manager, Thomas Moore - 22 March 2022

Our ‘Focus-on-Change’ investment process seeks to identify stocks that are set to benefit from unrecognised positive change in their fundamentals. Markets can be irrational, losing sight of company fundamentals, especially during periods of macro disruption. This can create an abundance of opportunities which can play out in the long sweeps of more stable market conditions in the wake of this macro turmoil. We construct the portfolio using a high conviction, index-agnostic approach. This means that we ignore index weightings and invest in our best ideas where we see the greatest total return. We see a benefit to shareholders over time from investing in small and mid-cap stocks where inefficiencies are most prevalent, given the lack of research analysts covering these stocks. The current period of higher inflation is transforming the backdrop against which we are investing. With commodity prices and bond yields rising, it is becoming clearer that new stocks and sectors are taking over market leadership. In order to be capable of pivoting successfully in these changing market conditions, it is essential to follow a process that is dynamic – constantly focusing on change in company fundamentals and investing right across the UK equity market."